FOR IMMEDIATE RELEASE
Tokyo, December 1, 2011
JT completes its acquisition of a leading tobacco company
in the Republics of Sudan and South Sudan
Japan Tobacco Inc. (JT) (TSE: 2914) announced today that the JT Group has completed the acquisition of Haggar Cigarette & Tobacco Factory Ltd. (North Sudan) and Haggar Cigarette & Tobacco Factory Ltd. (South Sudan) (collectively, HCTF). The acquisition was announced in the July 28, 2011 statement, “JT to Acquire Leading Tobacco Company in the Republics of Sudan and South Sudan.”
HCTF sold over 4.5 billion cigarettes in 2010. The JT Group will be building business upon this strong base in the Republics of Sudan and South Sudan.
Total consideration is approximately $450 million which values the transaction at 9.9 times HCTF’s 2010 underlying earnings before interest, tax, depreciation and amortization. This acquisition is expected to have little impact on the group’s consolidated account for the fiscal year ending March, 2012.
In the international tobacco business, the group remains committed to strengthening Japan Tobacco International’s (JTI) business foundations with an overall strategy to foster growth.
Contacts: Hideyuki Yamamoto, General Manager
Yoshinori Tsuchiya, Associate General Manager
Media and Investor Relations Division
Japan Tobacco Inc.
Tokyo: +81-3-5572-4292
E-mail: jt.media.relations@jt.com
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Japan Tobacco Inc. is a leading international tobacco product company. Its products are sold in over 120 countries and its internationally recognized cigarette brands include Winston, Camel, Mild Seven and Benson & Hedges. With diversified operations, JT is also actively present in pharmaceuticals and foods. The company’s adjusted net sales(*) were ¥1.946 trillion (US$23,415 million(**)) in the fiscal year ended March 31, 2011.
* Adjusted net sales on a consolidated basis do not include excise tax and revenue from the imported tobacco, domestic duty free, the China Division and other peripheral businesses in the Japanese domestic tobacco business. Nor does it include excise tax and revenue from distribution, contract manufacturing and other peripheral businesses in the international tobacco business.
**Translated at the rate of ¥83.15 per $1, as of March 31, 2011